Westlaw Topical Highlights: Bankruptcy, November 4, 2013

November 4, 2013

BankruptcyWestlaw Topical Highlights for Bankruptcy provides summaries of significant federal and state judicial decisions and legislative and administrative activities affecting Bankruptcy law.  A Westlaw subscription is required to access the documents linked from this page.

Plans: Plan “provided for” creditor’s claim, as required for debtor’s debt to creditor to be discharged.  In re Orenshteyn, 2013 WL 5674384 (Bkrtcy.D.Mass.)   A debtor’s confirmed Chapter 13 plan, in devoting an entire paragraph to the disputed claim of a creditor with whom the debtor was involved in ongoing state court litigation, and in indicating that the plan would provide no payment on the creditor’s claim, but that, if the creditor prevailed in this litigation and filed a proof of claim, then the debtor would amend the plan to reflect the status of the creditor’s claim, clearly “provided for” the creditor’s claim. Thus, the debtor’s debt to the creditor was discharged upon the completion of his plan payments. 2013 WL 5674384.  (The full-text of the rest of the Topical Highlights is available within Westlaw Next, subscription required).

Avoidance: Trustee stated plausible constructive fraudulent transfer claim against investors in alleged Ponzi scheme.  Wagner v. Galbreth 2013 WL 5670866 (D.N.M.)

Avoidance: Abandonment of liened property did not affect court’s jurisdiction over motion to avoid lien as impairing debtor’s exemption.  In re Ramos 2013 WL 5738238 (1st Cir.BAP (P.R.))

Avoidance: Court must use “net investment” method in calculating liability of investors in Ponzi scheme operated by debtor-broker.  Securities Investor Protection Corp. v. Bernard L. Madoff Inv. Securities LLC 2013 WL 5651285 (S.D.N.Y.)

Debtor Protections: Offsetting trust’s income distribution against debtor’s interest obligation to trust did not violate discharge injunction.  In re Lunt 2013 WL 5406436 (D.Kan.)

Discharge: Debtor’s criminal conviction did not have collateral estoppel effect in subsequent nondischargeability proceeding.  In re King 2013 WL 5770275 (Bkrtcy.E.D.Mich.)

Bankruptcy Estate: Debtor whose recent moved disqualified her from claiming Indiana state law exemptions could claim bankruptcy exemptions.  Shell v. Yoon 2013 WL 5406266 (N.D.Ind.)

Bankruptcy Estate: Bankruptcy court order that sale to employer was free and clear preempted order that employer was liable for unemployment insurance premiums.  Ouray Sportswear, LLC v. Industrial Claim Appeals Office 2013 WL 5761067 (Colo.App.)

Debtor Protections: Bank’s continued possession of debtor’s personal property postpetition constituted a willful violation of the automatic stay.  In re Grewal 2013 WL 5442058 (Bkrtcy.N.D.Cal.)

Discharge: Denial-of-discharge complaint had to be dismissed as not timely filed.  In re Pocius 2013 WL 5777296 (Bkrtcy.E.D.Pa.)

Appeals: Statute rendered moot appeal by debtor’s shareholder and related company challenging orders related to sale of property.  In re AFY 2013 WL 5735551 (C.A.8 (Neb.))

Bankruptcy Estate: Increase in value of debtors’ assets was adequate protection for existing creditor whose lien would be primed.  In re Vegt 2013 WL 5652157 (Bkrtcy.N.D.Iowa)

Appeals: Debtor’s shareholders lacked standing to appeal order overruling their objections to former owners’ proofs of claim.  In re AFY 2013 WL 5738234 (C.A.8)

Bankruptcy Estate: Court could not alter Chapter 7 distributive scheme for campaign funds that entered bankrupt candidate’s estate.  In re Chambers 2013 WL 5719081 (Bkrtcy.N.D.Ga.)

Avoidance: Chapter 13 debtor had standing to pursue avoidance claim in aid of exemption rights.  In re McCarthy 2013 WL 5778955 (8th Cir.BAP (Minn.))

Case Administration: Conversion of case from Chapter 13 to Chapter 7 was not abuse of discretion.  In re Zizza 2013 WL 5716156 (1st Cir.BAP (Mass.))

Leases and Contracts: Letter from debtor’s subsidiary to lessor’s president was not effective written notice of lease’s non-renewal.  In re Whyco Finishing Technology, LLC 2013 WL 5770282 (Bkrtcy.E.D.Mich.)

Discharge: Attorney failed to establish that debtor lacked intent to pay when she hired attorney to represent her in divorce proceeding.  In re Brady-Zell 2013 WL 5778957 (1st Cir.BAP (Mass.))

Plans: Delay in debtor’s maintenance payments on residential mortgage debt violated antimodification provision.  In re Rogers 2013 WL 5804003 (Bkrtcy.W.D.Mich.)

Discharge: Prepetition transfer of assets into trust warranted denial of debtor’s discharge.  In re Croft 2013 WL 5740160 (Bkrtcy.W.D.Tex.)

Plans: “Contingencies” specified in proposed asbestos trust did not satisfy requirements of § 524(g).  In re Plant Insulation Co. 2013 WL 5779568 (C.A.9 (Cal.))

Case Administration: Debtor’s dishonesty with the court provided basis to dismiss Chapter 13 case for “cause.”  In re Lin 2013 WL 5683653 (Bkrtcy.S.D.N.Y.)

Discharge: Debtors’ use of loan proceeds for general business purposes was not “conversion.”  In re Schupbach 2013 WL 4838906 (Bkrtcy.D.Kan.)

Claims: Asset sale agreement was ambiguous as to how it applied to prepetition class action settlement with Chapter 11 debtor.  In re Motors Liquidation Co. 2013 WL 5433252 (S.D.N.Y.)